787253--9/28/2009--NATURAL_ALTERNATIVES_INTERNATIONAL

related topics

{system, service, information}

{product, liability, claim}

{customer, product, revenue}

{stock, price, operating}

{acquisition, growth, future}

{condition, economic, financial}

{property, intellectual, protect}

{operation, international, foreign}

{personnel, key, retain}

{provision, law, control}

{competitive, industry, competition}

{product, market, service}

{control, financial, internal}

Because we derive a significant portion of our revenues from a limited number of customers, our revenues would be adversely affected by the loss of a major customer or a significant change in its business, personnel or the timing or amount of its orders. Our future growth and stability depends, in part, on our ability to diversify our sales. Our efforts to establish new sales from existing customers and new customers and develop and grow our branded products could require significant initial investments, which may or may not result in higher sales and improved financial results. We may, in the future, pursue acquisitions of other companies that, if not successful, could adversely affect our business, financial condition and results of operations. Our operating results will vary. We have experienced a decline in net sales and incurred losses in recent years and there is no guarantee that our sales will improve or that we will earn a profit in future years. Fluctuations in our operating results may adversely affect the share price of our common stock. A significant or prolonged economic downturn, such as the one the global economy has recent experienced, could have, and recently has had, a material adverse effect on our results of operations. Because our direct-to-consumer sales rely on the marketability of key personalities, the inability of a key personality to perform his or her role or the existence of negative publicity surrounding a key personality may adversely affect our revenues. Our industry is highly competitive and we may be unable to compete effectively. Increased competition could adversely affect our financial condition. We may not be able to raise additional capital or obtain additional financing if needed. The failure of our suppliers to supply quality materials in sufficient quantities, at a favorable price, and in a timely fashion could adversely affect the results of our operations. Our business is subject to the effects of adverse publicity, which could negatively affect our sales and revenues. We could be exposed to product liability claims or other litigation, which may be costly and could materially adversely affect our operations. If we or our private label contract manufacturing customers expand into additional markets outside the United States or our or their sales in markets outside the United States increase, our business would become increasingly subject to political, economic, regulatory and other risks in those markets, which could adversely affect our business. Our products and manufacturing activities are subject to extensive government regulation, which could limit or prevent the sale of our products in some markets and could increase our costs. If we are unable to attract and retain qualified management personnel, our business will suffer. Our manufacturing and third party fulfillment and call center activities are subject to certain risks. We may be unable to protect our intellectual property rights or may inadvertently infringe on the intellectual property rights of others. Collectively, our officers and directors own a significant amount of our common stock, giving them influence over corporate transactions and other matters and potentially limiting the influence of other stockholders on important policy and management issues. If our information technology system fails, our operations could suffer. If certain provisions of our Certificate of Incorporation, Bylaws and Delaware law are triggered, the future price investors might be willing to pay for our common stock could be limited. Our stock price could fluctuate significantly.

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787253--9/28/2009--NATURAL_ALTERNATIVES_INTERNATIONAL_INC